Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to modify (Modification No. 2) a contract with American Mechanical Group, Inc. to extend the contract end date to March 31, 2022, and add an escalator clause to the contract to provide residential emergency repair services as part of the Department of Development’s Emergency Repair Program.
Original contract amount $ 45,000.00 PO205754
Modification No. 1 amount $225,000.00 Ord. 0509-2020 PO220239
Renewal No. 1 amount $197,754.00 Ord. 2887-2020 PO255432
Modification No. 2 amount $ 0.00
Total contract amount $467,754.00
The purpose of the Emergency Repair Program is to repair items of an emergency nature that would impact a household remaining safely in their home. American Mechanical Group, Inc. provides heating, hot water, plumbing, sewer and electrical services. Most homeowners are at or below 50% AMI with exceptions allow up to 80% AMI.
The Department of Development advertised RFQ014201on Vendor Services in November 2019 for the Emergency Repair program. Three bids were received and the Director of Development entered into contract with three bidders under the authority of Columbus City Code Section 329.19. For the original contract, the contract period is from the date of approval of the purchase order to December 31, 2020. The option to renew the contract for one additional year through 2021 was exercised under ordinance 2887-2020.
The department is currently engaged in the Invitation to Bid process per Columbus City Code Chapter 329, but the process will not be completed, nor legislation ready, before City Council’s last meeting in 2021. It is estimated that the contract will be executed in January 2022. Extending the existing contract through March 31, 2022 will prevent interruptions to the program and delays in providing services.
Likewise, modifying the contract to include an escalator clause will provide the contractor with access to the necessary materials and labor to provide these services.
In March 2020, Columbus City Council approved ordinance 0509-2020 to modify the contract to add additional funds. The contract term did not change.
In December of 2020, Columbus City Council approved ordinance 2887-2020 to renew the contract with American Mechanical Group, Inc through December 31, 2021.
This legislation will extend the existing contract through March 31, 2022, and to include an escalator clause.
Emergency action is requested in order to continue to services without interruption.
FISCAL IMPACT: Ordinance 2887-2020 included language that allows the City Auditor to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance. The money remaining on the purchase order from Renewal No. 1 to be used for this modification is from fund 7782. For financial management reasons, the department wishes to change the funding source for the remaining funds from fund 7782 to fund 7739. After this ordinance is effective, the existing purchase order shall be cancelled and so much as is remaining on the purchase order at that time shall be established on a new purchase order in fund 7739.
CONTRACT COMPLIANCE: the vendor number is 007448 and expires 11/3/22.
Title
To authorize the Director of Development to modify a contract with American Mechanical Group, Inc. to provide residential emergency repair services as part of the Department of Development’s Emergency Repair Program; and to declare an emergency.
Body
WHEREAS, the Director of Development has identified the need to modify a contract with American Mechanical Group, Inc., to provide residential emergency repair services as part of the Department of Development’s Emergency Repair Program, to extend the contract end date through March 31, 2022, and to modify the existing agreement by adding an escalator clause; and
WHEREAS, the Department of Development advertised RFQ014201on Vendor Services in November 2019 for the Emergency Repair program, three bids were received, and the Director of Development entered into contract with three bidders under the authority of Columbus City Code Section 329.19; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to modify this contract to continue program services without interruption, thereby preserving the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development be and is hereby authorized to modify a contract with American Mechanical Group, Inc. to extend the contract end date to March 31, 2022, and to add an escalator clause in order to provide residential emergency repair services as part of the Department of Development’s Emergency Repair Program.
SECTION 2. This modification is made in accordance with the relevant provisions of the City Code Charter 329 relating to contract modifications.
SECTION 3. That the City Auditor is authorized to establish such accounting codes as necessary, to make any accounting changes to revise the funding source for all agreements, contracts, or modifications associated with this Ordinance.
SECTION 4. That the City Auditor is hereby authorized to re-establish encumbrance balances in eligible funds as financially necessary.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.